Royal Bank Of Canada Forecasts Strong Price Appreciation for Cheniere Energy (NYSE:LNG) Stock

Key Points

• Royal Bank of Canada raised its price target on Cheniere Energy to $300 (from $286) and kept an "outperform" rating, implying about a 16.13% upside from the current price.
• Multiple analysts have boosted targets (Goldman to $312, Morgan Stanley to $313), leaving a consensus target of $293.59 and an overall rating of "Moderate Buy" (1 Strong Buy, 17 Buy, 2 Hold).
• Cheniere reported a quarterly EPS of $10.68 (well above estimates) with revenue up 22.9% YoY, and its board approved a $10 billion share repurchase program (up to ~21.1% of outstanding shares), signaling strong profitability and capital-return focus.

Cheniere Energy (NYSE:LNG - Get Free Report) had its price objective lifted by analysts at Royal Bank Of Canada from $286.00 to $300.00 in a report issued on Tuesday,MarketScreener reports. The firm currently has an "outperform" rating on the energy company's stock. Royal Bank Of Canada's price objective indicates a potential upside of 16.13% from the company's current price.

LNG has been the subject of several other research reports. The Goldman Sachs Group lifted their target price on shares of Cheniere Energy from $276.00 to $312.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Scotiabank increased their price target on shares of Cheniere Energy from $266.00 to $285.00 and gave the company a "sector outperform" rating in a report on Thursday, March 5th. Wells Fargo & Company cut their price objective on shares of Cheniere Energy from $280.00 to $271.00 and set an "overweight" rating for the company in a research report on Friday, March 13th. TD Cowen upped their target price on Cheniere Energy from $250.00 to $255.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Finally, Morgan Stanley upgraded Cheniere Energy from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $236.00 to $313.00 in a research note on Monday, March 23rd. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $293.59.

Cheniere Energy Stock Down 1.2%

LNG opened at $258.34 on Tuesday. The stock's fifty day simple moving average is $250.46 and its 200 day simple moving average is $223.37. Cheniere Energy has a 1-year low of $186.20 and a 1-year high of $300.89. The stock has a market cap of $54.29 billion, a PE ratio of 10.67 and a beta of 0.14. The company has a current ratio of 0.94, a quick ratio of 0.81 and a debt-to-equity ratio of 1.74.

Cheniere Energy (NYSE:LNG - Get Free Report) last released its quarterly earnings data on Wednesday, February 25th. The energy company reported $10.68 EPS for the quarter, topping analysts' consensus estimates of $3.90 by $6.78. Cheniere Energy had a net margin of 26.68% and a return on equity of 32.04%. The firm had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same period in the previous year, the business posted $4.33 earnings per share. The company's revenue for the quarter was up 22.9% compared to the same quarter last year. As a group, research analysts expect that Cheniere Energy will post 11.69 earnings per share for the current year.

Cheniere Energy declared that its Board of Directors has approved a share buyback program on Thursday, February 26th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the energy company to buy up to 21.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its shares are undervalued.

Insider Transactions at Cheniere Energy

In related news, CFO Zach Davis sold 29,000 shares of the company's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $300.00, for a total transaction of $8,700,000.00. Following the completion of the sale, the chief financial officer owned 87,146 shares of the company's stock, valued at $26,143,800. This represents a 24.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Sean N. Markowitz sold 22,246 shares of the stock in a transaction dated Thursday, March 26th. The stock was sold at an average price of $290.98, for a total transaction of $6,473,141.08. Following the sale, the executive vice president owned 64,000 shares in the company, valued at $18,622,720. The trade was a 25.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.26% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Dynamic Advisor Solutions LLC lifted its stake in Cheniere Energy by 1.5% during the third quarter. Dynamic Advisor Solutions LLC now owns 3,268 shares of the energy company's stock worth $768,000 after purchasing an additional 47 shares during the last quarter. Childress Capital Advisors LLC increased its stake in shares of Cheniere Energy by 0.9% in the 3rd quarter. Childress Capital Advisors LLC now owns 5,385 shares of the energy company's stock valued at $1,265,000 after purchasing an additional 47 shares during the last quarter. Ameriflex Group Inc. raised its holdings in shares of Cheniere Energy by 7.3% during the 3rd quarter. Ameriflex Group Inc. now owns 688 shares of the energy company's stock worth $162,000 after buying an additional 47 shares in the last quarter. Howard Capital Management Inc. lifted its position in shares of Cheniere Energy by 3.3% during the 3rd quarter. Howard Capital Management Inc. now owns 1,488 shares of the energy company's stock worth $350,000 after buying an additional 48 shares during the last quarter. Finally, Armstrong Advisory Group Inc. lifted its position in shares of Cheniere Energy by 47.6% during the 3rd quarter. Armstrong Advisory Group Inc. now owns 155 shares of the energy company's stock worth $36,000 after buying an additional 50 shares during the last quarter. 87.26% of the stock is owned by institutional investors.

Cheniere Energy Company Profile

Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company's core activities include natural gas liquefaction, long‑term and short‑term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.

Cheniere's principal operating assets are large-scale LNG export terminals located on the U.S.

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